Merk Corporation runs in stores, one in Medfield and orc in Oakland. Opcratrg income for cach store in 2017 is as follows: (Click the icon to view the operating income The equipment has zero disposal value. Raul 8 Requirement 1. By closing down the Oakland store, Mark can reduce overall corporate overhead costs by $85,000. Should Merk Corporation close down the Oakland Elore? (Complete all answer boxes. Enter lose in revenuss as a negative amount Enter a "O" if the cost is not relevant. I the net oilectis an operating lase enter the amount with parentheses or a minus sien! 0 Data Table (Loss In Revenues) Savings in Costs from Closing Dakland Store 0 Requirements Medfield Oakland Revenues S 2 500,000 $ 1.500.000 1. By closing down the Oakland store. Merk can reduce overall worporale overhead costs by $85,000. Should Mark Corporation can down the Oakland stane? 2. Instead of cking down the Oakland store Mark Corporation is thinking of opening another one with revenues and costs identical to the Oakland sinre incuding a cost of 344.000 l oquire ecuipier with a one-year useful life and zero dapool valuel. Opening this store wil inocasc corporate acrhead coats by $14,CCO Should Merk Corporation en ander lore like the Oakland swre? Explain Operasrg costs Cost of goods sold Variable operating costs (labor, utilities) Lerent (renewable each year) Depreciation of equipment Allocated corporate overhead Total operating costs Effect on operating Income loss) Operating costs Cost of goods sold Variable operating costs (labor, utilities) Lease rent renewable each year) Depreciation of equipment Allocated corporate overhead Total operating costs Operating income (loss) 1000,000 200,000 138,000 49,500 83.000 1489.500 1220 nnn 130,000 165,000 43,500 79,000 1637,500 Print Done $ 1030.500 $ 137.500) Print Dona Enter any number in the edit fields and then click Check